Ratepayers looking at $200 hike

MACKAY Regional Council delivered its 2009/10 budget yesterday morning, serving ratepayers with an average $200 rates rise, including levies.

General rates will increase by an average of $73 a year, which equates to a 7.6 per cent rise on last year's general rates.

The combined increase in water access, sewerage and cleansing levies is $120 per ratepayer, while a new Disaster Recovery charge of $10 will be added.

The record $314 million budget delivers a $119 million capital works program and ongoing improvements to existing community infrastructure.

Mackay Regional Mayor Col Meng said council had an important role in helping to stimulate the local economy during the current economic climate.

“We have adopted a responsible approach to where the money is to be spent to ensure the community is provided with the best possible outcome,” he said.

Cr Meng criticised the State Government for what he described as its “destimulus package attitude” to councils by abandoning direct water and sewerage subsidies.

“We have no other option but to source that money from ratepayers,” he said.

“In total the council has lost $18.7 million from the State Government, which has equated to a 1.6 per cent increase to our rates.

“A 6.2 per cent increase in the Queensland Construction Cost Index had another enormous impact on council's operating costs.”

Cr Meng said the average residential rates increase of 7.6 per cent, including water, sewerage, cleansing and waste refuse charges, equated to about $3.73 a week.

At the end of 2009/10 the council will have loans totalling $148 million, of which $42 million are from this year.

Around $60 million in capital works that weren't completed during the 2008/2009 budget will be carried over into the 2009/10 budget.

Deputy Mayor Darryl Camilleri said as the council had introduced several new assets (water treatment, sewerage plant and convention centre) and due to significant increases in valuations across its assets, there would be a significant increase in depreciation, from $33.095 million to $46.099 million.

“To fund this level of increase would have an unacceptable increase on rates in the first year the depreciation effect of these assets comes on board,” he said.

“Therefore, $7.148 million will be unfunded depreciation.

“In future years, we will progress to cover those levels of depreciation; however, the increase in 2010 is too significant to manage in just one year.”